Improving Reorder Quantities and Forecasting Methodologiesthrough Simulationsignificant impact on the bottom line. 1.1 Initial Inventory Systembased on the location ’s capacity

摘要

This paper describes a research project to determine the appropriate order quantity and forecasting methods for alocal company ’s maintenance, repair, and overhaul inventory. Since stockouts have a significant impact on thebottom line, it is logical to buffer with on-hand inventory; however, the magnitude of parts limits storage optionsand makes it difficult to track inventory at the individual piece level. The firm wishes to improve annual partrequirements that are sent to their suppliers, which was accomplished in two phases. We demonstrate significantsavings and an increased fill rate with the new reorder quantities and forecasting methods.